I am a seller who just went through a lengthy short sale with BOA. My realtor had completed all sales paperwork ensuring that I would receive the $3,000 HAFA funds when we listed the home, but at the closing table the funds were mysteriously missing. The title company had no explanation at the time, and has continuously changed stories from "they didn't have time to qualify me", to "It was the bank's responsibility to qualify me, and they did not." The bank had stalled for months after approving the sale, so the house was actually set to go to auction only 1 week after the date of closing, so I was forced to sign the papers.
It is very frustrating to have been assured of the HAFA funds, and then be denied these funds without any notice. My realtor is doing some legwork, and reports that what he is hearing the more likely reasoning is that I was actually not eligible for HAFA funds because my home was in active foreclosure. Does anyone here know if that is a legit reason, or do I need to pursue this further with the title company?
Thanks for your time, and any help!
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I just had a HAFA approved short sale whereas the Seller did NOT get the $3000 incentive because I was told that it is a relocation assistance and the Sellers had already vacated the property - hence no need to give them a relocation assistance when they had already relocated. Could this possibly be the case?
I know this won't give you any answer on your question but at least you were able to close it as a short sale. I have just spent considerable time trying to get a HAFA shortsale to work and after getting the letter that the seller qualifys and doing all the required jumps asked of me to be given a denial because they just found out that the investor is changing servicing companies the end of October and there wouldn't be time to close the short sale. Appraisal was in all paperwork was in. but not enough time. So, now we have to wait and see who the new servicing company will be. I wonder if this is why we are in the trouble we are in?
Good luck.
If the agent asured you that you'd get the money, what's the question?
Didn't your agent review the HUD-1?
Did the title compay assure you you'd get the money?
Bill
Your case is easy to solve. If your listing agent did his/her work correctly and you did qualify for HAFA, then BofA would send you a Short Sale Agreement (SSA) stating what you must sell the house for, the fact that would receive $3,000 at closing and it must be sold within 120 days or, possibly, go DIL. If you weren't provided an SSA to sign and return, then you have no case - somebody misinformed you that you qualified for HAFA. Additionally, the preliminary HUD-1 should have shown a $3,000 payout (HAFA) to you. If you can't produce those two documents, I think someone failed you and you do NOT have a case.
Good luck.
It is actually extremely rare when the title company screws up and doesn't include something on the HUD like the HAFA incentive. They prepare the HUD based on instructions which can be in the form of the contract, approval letter, etc. They always need something in writing saying what they are supposed to include. If they missed putting it on the HUD, then they are probably on the hook, but so is your agent. They are representing you and should have reviewed the HUD that BOA approved. The title company or the real estate agent do not qualify anyone for HAFA participation. This comes from the BOA in your case. I had a short sale recently where the seller signed and accepted the offer to participate only to have Freddie Mac (investor) refuse to give any of the incentive. They felt they were not getting enough so in order to increase the proceeds, they eliminated the incentive. Getting the incentive is NEVER a given even if you are approved to participate. It always says on the approved to participate letter that you will receive up to $3000. Up to can be $3000 or it can be nothing. That being said, if it said it on your approval letter...then you should be entitled to the money. Hope this helps.
I've seen many times that a title company made a mistake on the HUD. I always insist on reviewing the HUD regardless of the type of sale. I've done REO for years and always asked to review HUD before submitting to seller. One time title didn't send me the HUD and they missed a $2500 payment to a neighbor for a well share agreement. Seller's attorney and title both claimed it was my fault and I should pay but I sent seller two faxes (this was 10 years ago) I sent title asking to fax me HUD for review and told seller title and attorney reviewed but I didn't and said they should ask them to show proof they sent me HUd to review. Paralegal got fired, title company lost account.
Bottom line even if you should have gotten $3000 and if title missed it ultimately your agent should have checked that HUD was right.
This issue has nothing to do with the Title Company period. I expect your agent was negotiating this transaction with BofA and would have become aware during the process if you were HAFA approved or not. Also, as others have said, it would have been CLEARLY indicated on the Short Sale Approval Letter you should have received either from BofA directly - if they had the correct address for you - or from your Agent when they received it from BofA ---- prior to closing.
I also agree with others that your agent would not have known at the time of listing your home as to whether it would be HAFA eligible or not - BUT - he/she would have known as they got into the discussions with BofA. If they used a 3rd Party Negotiator to handle it for them, that person should have understood once they were in discussions with BofA.
You need to go back to your agent and have that discussion.
Good luck!
I work for a title company and I also do short sales in Bank of America Equator System. If you were not approved for HAFA the title company has nothing to do with that. When the realtor initiated the short sale in EQ they are asked if the property is your primary residence and if answered "yes" BOA automatically reviews the file for HAFA. It could be that you were so close to auction that you didn't qualify for the HAFA program. You should call BOA at 866-880-1232 and they will tell you the reason you didn't qualify for HAFA.
No listing agent should ever tell you that you will be qualified for HAFA as they have no idea if you are or not. Servicer qualifies not the agent.
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